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2019 Progress Update New York Works Creating Good Jobs 2019 Progress Update The City of New York Mayor Bill de Blasio Vicki Been Deputy Mayor for Housing and Economic Development Table of Contents Executive Summary Additional Economic pg.03 Benefits pg.21 Introduction pg.04 Notes & References pg.22 Methodology pg.06 City-Owned Property pg.10 Direct Investment and Support pg.13 Financing and Incentives pg.17 Land-Use Tools pg.19 New York Works 2019 Update Page 2 Executive Summary New York Works guides city investments The jobs created to date are held in job creation by a wide range of New Yorkers Launched in Summer 2017, the New York Works jobs plan (‘the Plan’) aims to catalyze The Plan fosters job growth across a range of the creation of 100,000 good-paying jobs by 2027. This Plan is not just about occupations, including both those that tend to require job creation—it also strives to invest in an attainable middle class by making good- advanced qualifications, and those that do not. We are paying jobs even more accessible to New Yorkers. Since 2017, the city has: pleased to report that at least 42 percent of good- paying jobs created to date are held by workers with »» Invested in the Brooklyn Army Terminal and Brooklyn Navy Yard to help attract and grow companies that create accessible jobs across industrial, qualifications below the Bachelor’s level. advanced manufacturing and creative sectors Many of the jobs created through New York Works have shown strong initial results in terms of the diversity and »» Launched CyberNYC, a plan to make New York City the cyber capital of the world and help New Yorkers get accessible, good-paying jobs equity of the workers benefitted. Overall,46 percent of the jobs created to date are held by women »» Trained workers and connected them to jobs of the future through the and 54 percent are held by workers of color. Tech Talent Pipeline, ApprenticeNYC and CUNY2X Tech initiatives »» Rezoned Greater East Midtown in Manhattan, which allows for more Jobs Held by Workers Jobs efficient use of this important commercial space, and will create a large Without a Jobs Held by Workers number of good-paying jobs for New Yorkers. Categories of Bachelor’s Held by Workers Living in City Action Degree Women of Color NYC City-owned 39% 42% — 78% City actions taken since 2017 put us well on track property to generate 100,000 good-paying jobs by 2027, Direct investment 49% 52% 69% 93% having created over 3,000 good-paying jobs to date and support After two years, city actions taken through the Plan, including those above, are Financing collectively projected to generate a total of 35,875 good-paying jobs by 2027. and 37% 53% 55% 72% Future actions will take us the rest of the way toward creating 100,000 jobs. incentives To date, we have directly created 3,725 full-time, private sector jobs, of which 3,072 (or 82%) are good-paying jobs, defined as jobs that pay $50,000 or more per year or are on a pathway to paying that wage. City actions to facilitate job creation fall into four categories—outlined below: Additional benefits are created from fiscal returns to the city and Projected Jobs Good-Paying Jobs from Created Jobs Created indirect job creation Categories of City Action Actions to Date to Date to Date While not counted toward our 100,000-job target, Sell, lease, or renovate city- construction sector jobs are a vital part of New York owned property to support 6,725 2,103 1,827 City’s economy. City actions taken to date will spur businesses that will create jobs the creation of at least 43,000 construction jobs. Directly invest in and support They will also catalyze the creation of at least 5,000 growing industries through 7,950 1,023 948 indirect jobs (jobs created through business-to- funding and programming business spending as a result of the Plan). Offer financing and tax In addition to these direct and indirect job incentives to targeted 1,075 599 297 impacts, the good-paying jobs created as part of sectors and businesses New York Works are estimated to generate at least Employ land-use tools, like $400 million in fiscal returns to the city through zoning, to increase and 20,125 — — taxation revenue over the duration of the Plan. develop space for jobs Total Good-Paying Jobs 35,875 3,725 3,072 New York Works 2019 Update Page 3 Introduction Today, New York City’s economy is thriving. Our average unemployment rate in 2018 was 4.1 percent, the lowest year on record, and we are home to 4.6 million jobs, a record high. Our The overarching metro GDP is $1.7 trillion; if the New York City metropolitan area were a country, it would be among the 20 largest national economies in the world. goal is simple: The city is the financial capital of the world and is home to more Fortune 500 companies than any other city in North America. Additionally, our tech sector continues to grow rapidly. In 2018, to make the city there was $13.3 billion worth of venture capital investment in New York City–based companies, almost triple the investment levels from five years prior. more equitable While these statistics demonstrate an increased level of success, beneath the surface there are economic realities that must be addressed: for all. »» Over the past 10 years, the percentage of New Yorkers earning middle-income wages has dropped from 46 percent to 43 percent, affecting a quarter-million people.1 »» Since the 2008 recession, job growth has been Improving accessibility to the middle class in New York City has concentrated in high- and low-paying occupations and, been a generational challenge. As such, the Plan is undoubtedly after adjusting for inflation, employees in low-income ambitious. The Plan has been designed to both accelerate job growth occupations earned less money in 2017 than in 2008.2 in the near-term and lay the foundations for the longer-term. »» Low-income workers are much more likely to be self- Two years into New York Works, the city remains deeply committed employed. The rise of the gig economy—while an advantage to spurring job creation and ensuring that all New Yorkers have for some workers—also has the potential to create income the opportunity to access the new jobs that are created. The instability and to leave workers without the type of job investments made in that time are projected to create 36,000 jobs protections that they have historically enjoyed.3 and have already created over 3,000. This puts us on track to to facilitate creation of 100,000 accessible, good-paying jobs in the The city is taking actions to ensure this strong growth continues, remaining eight years of this plan. while making strategic investments needed to prepare all New Yorkers for the jobs of the future. We are proud of all that the Plan has accomplished since its launch two years ago, but we know that there is more to be done. This To achieve these goals, in 2017 the de Blasio administration administration is excited to continue making bold and innovative released New York Works, a vision that outlines Mayor de Blasio’s investments that ensure the city continues its upward economic commitment to use city tools to create 100,000 good-paying jobs trajectory, and that these gains directly result in fulfilling job by 2027. The Plan is not solely about job creation—it also supports opportunities for all New Yorkers. the development of middle-class jobs by making them accessible for New Yorkers of all backgrounds. The overarching goal is simple: to make the city more equitable for all. New York Works 2019 Update Page 4 New York Works has three objectives: »» Invest in the creation of jobs for the middle class. Today, a middle- class lifestyle is 30 percent more New York expensive than it was 20 years ago, and many new jobs do not offer a reliable pathway to the middle class. Raising a family, paying rent, and taking Works is a personal time off all become harder when one is financially constrained. »» Prepare for the jobs of the future. As technology brings new roadmap for roles and careers online and as the New York City economy continues to diversify into new sectors and jobs, most occupations today require greater digital proficiency than ever job creation. before. In that context, there must be pipelines developed to ensure access to new industries with long and sustainable career ladders. »» Ensure these jobs are accessible New York Works is a roadmap for job creation developed in close collaboration with to all New Yorkers. Too many city, academic, industry, and non-profit workforce development stakeholders. This includes the New Yorkers feel that higher-paying workforce development activities of the Department of Small Business Services (SBS) and the jobs are not for them, often because Mayor’s Office of Workforce Development (WKDEV), and the job-creating activities of New they perceive the training required York City Economic Development Corporation (NYCEDC) and the Brooklyn Navy Yard to access them as out of reach. With Development Corporation (BNYDC), among others.4 that in mind, the city is investing deeply in education—including 3K The city supports the creation of jobs in various ways, from unlocking spaces for businesses for All, Universal Pre-K, and the to grow, to directly training workers for their next career change. Many of the city actions CUNY system.
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